When you meet the partner of your dreams and planning a wedding is well underway, the last thing you probably think about is setting up a prenuptial agreement. Unfortunately, the cost of not thinking about a prenup is high when your financial future intertwines with that of another person.
One of the best ways to protect yourself financially is to establish a prenup, even if it does not seem like a romantic gesture.
Texas is a community property state, which may put you at risk
People who live in community states, such as Texas, may inherit half of their spouse’s debt during a divorce. According to CNBC, a prenup may help to prevent you from becoming responsible for half of your spouse’s if the two of you split up. Not only that, but a prenup can also help protect gifts, like an inheritance, from division during a divorce.
By protecting your financial future, you can relieve the burden of worry if the marriage does not survive.
Differing financial goals may expose you to risk as well
One of the most common reasons marriages end in divorce has to do with couples not having common financial goals. If your spouse loses a job, for example, and has no interest in going back to work, your marriage and family may suffer. Your spouse may not have the same financial goals as you do and might fail to see this as an issue.
A situation such as this may cause you to deplete your savings or sell off other assets to prevent bills from piling up. A prenup can protect those assets which you brought to the relationship, however, if you divorce instead.